OMCs recovered losses from 2-year long freeze on petrol, diesel rates in FY24
India’s three major state-owned oil marketing companies (OMCs) Indian Oil Corporation (IOC), Bharat Petroleum Corp Ltd (BPCL), and Hindustan Petroleum Corp Ltd (HPCL) posted a combined net profit of ₹69,000 crore in the current financial year till the October-December quarter (Q3FY24).
The OMCs have recouped losses registered in 2022 over frozen retail prices of petrol, diesel rates after international crude oil prices soared to a 14-year mark with Brent hitting $140 per barrel in March 2022 due to the Russia-Ukraine war-led spike. The state-run refiners registered a combined net loss of ₹21,201.18 crore during April-September 2022 despite accounting for ₹22,000 crore announced but-not-paid liquified petroleum gas (LPG) subsidy for the previous two years.
The three oil majors, which control roughly 90 per cent of India’s fuel market, had ‘voluntarily’ not changed petrol, diesel and cooking gas (LPG) prices for almost two years, resulting in losses when input costs were higher and profits when raw material prices were lower. The freeze on fuel rates was finally lifted today at 6:00 am as the central government announced on Thursday a hike of ₹2 pe litre on petrol and diesel will be implemented starting from March 15.
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Published: 15 Mar 2024, 09:52 PM IST
